The 35 year old had been training with the club in recent weeks after returning to England from a spell in Iceland. He expressed his delight at signing a deal with the League Two side.
"It's really exciting to be here. I'm just looking forward to getting back out on the pitch. Obviously the team are in a little bit of a bad run at the moment and hopefully my experience and ability might give everybody a lift."
Hughes played over 200 games for Birmingham in seven years at the club. From there he turned out for Charlton, Hull City, Derby County and Grimsby Town.
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